OECD Glossary of Statistical Terms - Changes in inventories

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CHANGES IN INVENTORIES (INCLUDING WORK-IN-PROGRESS)

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French Equivalent: Variations des stocks (y compris les travaux en cours)
Definition:
Changes in inventories (including work-in- progress) consist of changes in:
(a) stocks of outputs that are still held by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways; and
(b) stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing; they are measured by the value of the entries into inventories less the value of withdrawals and the value of any recurrent losses of goods held in inventories.
Context:
The acquisition, less disposals, of stocks of raw materials, semi-finished goods and finished goods that are held by producer units prior to their being further processed or sold or otherwise used. Inventories also cover all raw materials and goods stored by government as strategic reserves. Semi-finished goods include work-in-progress, that is, goods and services that are only partially completed and whose production process will be continued by the same producer in a period following the accounting period.
Work-in-progress is particularly important for production processes with long gestation periods, such as the construction of large-scale civil engineering works, the manufacture of aeroplanes and ships, and reforestation. Also covered by work-in-progress is the natural growth prior to harvest of agricultural crops and the natural growth in livestock raised for slaughter.

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